The quick comparison
Conventional: as little as 3% down, drop PMI at 20% — best for good credit. FHA: 3.5% down, flexible credit. VA: 0% down for eligible veterans, no monthly mortgage insurance. The best one minimizes your total cost.
Each loan shines for a different buyer. The goal isn’t the lowest rate alone — it’s the lowest total cost including mortgage insurance and fees for your specific credit and down payment.
Matching loan to buyer
Strong credit, want to drop PMI? Conventional. Flexible credit or lower down payment? FHA. Veteran? VA’s 0% down is hard to beat. We line up the numbers side by side so you choose with full information.
A closer look at each loan
Conventional loans reward good credit: as little as 3% down, and you can cancel mortgage insurance once you reach 20% equity, which lowers your long-run cost. FHA is the flexibility play — 3.5% down and more forgiving credit guidelines — but mortgage insurance generally stays for the life of the loan, so many borrowers later refinance to conventional. VA is, for eligible veterans, often the best of all: 0% down and no monthly mortgage insurance. Each shines for a different buyer, which is exactly why comparing them matters.
How to choose the lowest total cost
The headline rate is only part of the picture. The right loan minimizes your total cost — rate, mortgage insurance, and fees — over the years you’ll actually own the home. A slightly higher rate with no mortgage insurance can beat a lower rate that carries it. Your credit, down payment, and how long you plan to stay all factor in. As a broker we run the true side-by-side numbers across programs and lenders, so you choose with full information rather than a guess.
Frequently asked questions
Is FHA or conventional better?
Conventional if your credit is strong (you can drop PMI); FHA if you need flexibility on credit or down payment.
Can I switch from FHA to conventional later?
Yes — many buyers start with FHA for its flexibility, then refinance to conventional once they have 20% equity to drop mortgage insurance. We’ll plan the path.
Which loan has the lowest monthly payment?
It depends on your down payment and credit. VA (no mortgage insurance) is often lowest for eligible veterans; otherwise we compare conventional and FHA on total monthly cost.
Is VA really 0% down?
Yes, for eligible veterans — one of the best programs available, with no monthly mortgage insurance.
How do I choose?
Compare total cost — rate, mortgage insurance, and fees — for your profile. That comparison is what we do for you.
Save Financial, Inc. — NMLS #377740, DRE #01875766. Equal Housing Opportunity. Figures are illustrative for 2026 and not an offer of credit or a guarantee of rates or approval.